Laserfiche WebLink
SENT BY~Xerox Telecopier 7021 <br />1- 7-93 ~ 5~05PM <br />3038256525~C0 MINED LAND REC'L ~# 5 <br />Exhibit D at ~[ 3A. The Joint Venture paid $16,000 to the Truatse <br />as consideration for its execution of the Option Amendment. pe <br />letter dated December 6, 1978 Prom Howard Wadsworth to Rahe von <br />Hoene in which Mr. Wadsworth references the "$16,000 paid on <br />October 5, 1978." A copy of the December 6, 1978 letter is <br />attached hereto as E ibis E and incorporated herein by this <br />reference. <br />Dorchester exercised its option, and the parties executed <br />a coal mining lease on or about December 16, 1978 in the form <br />attached to the Option Agreement (the "Lease"). A copy of the <br />Lease is attached hereto as Exhibit F and incorporated herein by <br />this reference. Subsequently, Dorchester Coal Company <br />("Dorchester") succeeded to the interests of the Joint Venture as <br />lessee under the Lease. At the time the option was exercised and <br />the Lease executed, the first $50,000 advance minimum royalty <br />payment unfler the Lease became due. Exhibit Fat ~[ 20. Dorchester <br />sent a check for $34,000 to the Trustee, asserting that such amount <br />was the balance due. Exhibit E. On the advice of the Trustee's <br />counsel, Joseph A. Vento, steps were not taken at that time, or <br />subsequently, to claim the additional $16,000 royalty. Affidavit <br />oP Rahe von Hoene at ~ 3. The Affidavit of Rahe von Hoene ie <br />attached hereto as E~ ibit G and incorporated herein by this <br />reference. Instead, Mr. Vento preferred to take the position that <br />the royalty had been paid in full (the $34,000 plus the $16,000 <br />paid two months earlier on October 5, 1978) and that the October 5, <br />1978 Option Amendment lacked consideration (Exhibit G) at ~ 31r; <br />notwithstanding the fact that the Lease was executed beyond the <br />original option period based upon the validity of the extended <br />option period provided far in the Option Amendment. Thua, <br />Mr. Vento claimed the Lease was not amended and covered only one <br />seam of coal. OP course, Dorchester took the position that the <br />Option Amendment modified the Lease and that all coal on or under <br />the Property was covered by the Lease. Consequently, there was a <br />dispute between the Trustee and Dorchester related to the amount of <br />o0a1 under the Property that was subject to the Lease. <br />A second dispute arose between the Trustee and Dorchester <br />in August oP 1980, when Dorchester and the Truatse as plaintiffs <br />filed a lawsuit against Harrison Western corporation and others for <br />trespass upon the Property and wrongful removal of coal deposits <br />therefrom. such lawsuit was compromised and settled, resulting in <br />the defendants paying the sum of $200,000 into a fund (the <br />"Harrison Western Fund"), the appropriate division of which, as <br />between Dorchester and the Trustee, remained the subject oP <br />dispute. Exhibit G at Q 4. The relative positions of Dorchester <br />and the Truatse relating to the Harrison Western Fund are set forth <br />in detail in correspondence exchanged between counsel for the <br />lr A copy of Joseph <br />is attached hereto <br />reference, wherein <br />some particularity, <br />Vento~s letter to Dorchester dated June 8, 1979 <br />as Exhibit [i and incorporated herein by this <br />Mr. Vento states his position that "by way of <br />the $16,000 was never paid." <br />xwo.i evoiuim.m,m <br />